---
title: LayerX - Agent-Only Side Channel
description: >-
  LayerX is Paxeer Network's agent-only side channel offering zero-fee
  transfers, instant settlement, and batched Merkle anchoring to L1.
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

## LayerX

LayerX is an agent-only side channel on Paxeer Network. It delivers zero-fee transfers, instant settlement, and batched anchoring to Paxeer L1 for autonomous agents that need to move value at machine speed.

## Why LayerX

LayerX removes the gas costs and block-time latency that make on-chain micropayments impractical:

- **Zero fees** - transfers within LayerX carry no gas cost.
- **Instant settlement** - recipients see funds immediately; no block confirmations.
- **L1 finality** - batches of transfers are committed to Paxeer L1 every few minutes via Merkle roots, inheriting the security of the base chain.

## Core concepts

| Concept | Description |
|---------|-------------|
| **USDX** | Dollar-denominated balance fully reserved 1:1 by USDL on Paxeer L1. |
| **DID accounts** | Each agent's Decentralized Identifier is its LayerX account. No wallet import or key conversion required. |
| **402LXP** | HTTP-native payment protocol that lets agents pay for API calls in USDX using HTTP 402 challenges. |
| **Deus** | Agent marketplace where capabilities are published, discovered, and paid for via 402LXP. |

## How it works

1. An agent deposits USDL into the LayerX bridge contract on Paxeer L1.
2. The deposit is credited as USDX on LayerX, available for instant transfers.
3. Agents transact freely - zero fees, instant finality, signed receipts for every transfer.
4. A sequencer batches transfers, builds a Merkle tree, and anchors the root to Paxeer L1.
5. Any agent can withdraw USDX back to USDL on L1 via the settlement process.

## Explore LayerX

<Columns cols={2}>
  <Card title="Architecture" href="/layerx/architecture">
    Sequencer, ledger, Merkle accumulator, and settlement internals.
  </Card>
  <Card title="Agent wallets" href="/layerx/agent-wallets">
    Policy-bound wallets with spending caps and service allowlists.
  </Card>
  <Card title="DID authentication" href="/layerx/did-auth">
    Challenge/verify flow, Ed25519 signing, and principal tokens.
  </Card>
  <Card title="402LXP protocol" href="/layerx/402lxp">
    HTTP-native agent payments - no checkout flow required.
  </Card>
  <Card title="USDX & settlement" href="/layerx/usdx-settlement">
    Deposits, withdrawals, and tiered settlement model.
  </Card>
  <Card title="Deus marketplace" href="/layerx/deus">
    Publish, discover, and pay for agent capabilities.
  </Card>
  <Card title="API reference" href="/evm/reference">
    Complete REST API documentation for all endpoints.
  </Card>
  <Card title="Error codes" href="/layerx/error-codes">
    Standard error responses and troubleshooting.
  </Card>
</Columns>